We analyze how resource constraints and market structure interact in network industries to impact innovation. This issue has arisen recently in the United States where AT&T proposed to acquire T-Mobile's U.S. assets at least in part to obtain T-Mobile's radio spectrum, which AT&T says it needs...

We model how individuals and firms adapt beliefs, heuristics, mental frameworks and norms to changed circumstances. Adaptation competes with other work for limited mental resources. We apply our model to firms experiencing a technology shock. It is optimal for some firms to disband rather than...

There is general concern that producer subsidies distort competition. We examine a telecommunications subsidy system that transfers money from low cost regions to high cost regions of the U.S. Even though the system is designed to be competitively neutral, we find evidence that the system,...

There is general concern that producer subsidies distort competition. We examine a telecommunications subsidy system that transfers money from low cost regions to high cost regions of the U.S. Even though the system is designed to be competitively neutral, we find evidence that the system,...

I examine the effects of market concentration on connectivity in network industries. Using Cournot interactions for a duopoly, each network chooses quantity, quality for communications within the provider's own network (internal quality), and quality for communications between the provider's...

The purpose of the special issue the authors are presenting is to take different perspectives on the phenomenon of public utilities corporate governance, contributing to the understanding of a varied and diversified research topic

This chapter examines how incumbents and entrants respond to prices for network interconnection in telecommunications, including prices for unbundled network elements. Most studies of the effects of these prices find that lower prices encourage entry and encourage entrants to use more unbundled...

There are three basic approaches to mitigating this risk; namely, institutional instruments that limit the possibility of government opportunism, financial instruments that decrease financial risk, and investment strategies, such as choosing technologies that may not be cost-minimizing but that...

I describe key concepts for measuring utility costs, with special emphasis on telecommunications. I explain the differences between economic and accounting measures for cost analysis and their usefulness. Economic concepts for understanding marginal costs, fixed costs, shared costs, and...

This paper develops a model of adaptive leadership, which is leadership that helps organizations adapt to new or existing realities. A manager provides adaptive leadership by exposing the organization to a novel experience that demonstrates that the firm's beliefs do not match reality. Exposure...